Trump Tax Sham Shoved us off Fiscal Cliff: Rep. Doggett Questions CBO Director About New $110 Billion Offshore Tax Giveaways in Budget Committee Hearing
***Press Release***
FOR IMMEDIATE RELEASE January 29, 2020 | Contact: Kate Stotesbery 202-225-4865 |
Trump Tax Sham Shoved us off Fiscal Cliff: Rep. Doggett Questions CBO Director About New $110 Billion Offshore Tax Giveaways in Budget Committee Hearing
Washington, D.C. – Today, U.S. Representative Lloyd Doggett (D-TX), member of the House Budget Committee and Chair of the House Ways and Means Health Subcommittee, questioned the Congressional Budget Office Director regarding the new CBO Budget and Economic Outlook. Rep. Doggett shined a light on the CBO finding (p. 73-74) that corporate tax receipts will be reduced by $110 billion more than prior estimates of the Republican tax law, as a result of multinationals paying less tax on profits reported offshore. CBO attributes this increase, in part, to how the international tax provisions of the law were implemented through Treasury regulations.
Part of Rep. Doggett's exchange with CBO Director Swagel, below:
Rep. Doggett: As if the provisions that these Republicans wrote weren't bad enough at incentivizing moving offshore, the Treasury Department's been working to make it a little worse. And I read your report this year to indicate that, among the factors you look at, are the regulations Treasury has written and those that have not yet gone into effect, and you say they add about another $110 billion to us over the next decade. Is that right?
Director Swagel: Yes, so we've been tracking the incoming data related to the 2017 Tax Act. We don't have all of it just because…
Rep. Doggett: Because it probably will be worse once they actually complete their work. My concern, Mr. Chairman, is that 90 corporate giants in this country paid zero, absolutely nothing, zilch to contribute to the challenges that we face, and the Trump Treasury Department is only making it worse with their regulations.
Rep. Doggett has authored the No Tax Breaks for Outsourcing Act (H.R. 1711) to reverse provisions of the Republican tax law that allow for multinationals to pay half the U.S. rate, or even less, on profits earned abroad. It has been cosponsored by 106 Members of the House.
His full remarks and exchange can be watched here:
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